Proposed adjustments to social security contribution calculation thresholds, spearheaded by Labor Minister Bärbel Bas (SPD), are projected to impact higher earners, with some potentially facing annual increases of up to €903, according to calculations by economist Frank Hechtner of the University of Erlangen-Nürnberg.
The proposed regulations, currently undergoing inter-departmental coordination, would raise the threshold for pension insurance contributions in the coming year from €8,050 to €8,450 and those for statutory health and care insurance from €5,512.50 to €5,812.50. These calculation thresholds are annually adjusted in line with income development. However, the impact of these increases could be partially offset by planned changes in tax law for the upcoming year.
For instance, a single individual earning €6,000 per month may face an additional €394 in social security contributions next year. Factoring in the potential tax adjustments, this increase could be reduced to just €81 annually. Couples filing jointly with two children are expected to experience the highest annual increases, particularly when one partner earns between €8,500 and €10,000 per month, while the other earns little to nothing or around €1,000. In these cases, potential increases could reach approximately €300 per year.
Economist Hechtner noted that the upward revision of these thresholds could diminish some of the projected tax relief slated for 2026.
